I assume you don't have any evidence of that either. (Not sure why I keep asking the question...)
Conspiracy Theory.... Theory
- Thread starter mattp58
- Start date
I really don't understand the mentality of, "they were bringing in millions so it was OK for them to stuff their pockets full". What if that money would have been used for tuition or scholarships? They were getting paid very well to do a job. They felt like they should receive extra compensation for said good job. Then they figured out a way to get said compensation legally....... but unethically.......
Which transactions are those?
I wish ANY of you that make these claims had at least a modicum of integrity to admit you know absolutely NOTHING about the details of this situation and are simply regurgitating the same rhetoric of someone whose opinion you admire. That's a truth you don't want to admit to anyone else or yourself.
Obviously you don't understand the purpose of the foundation. Let's use a laymen's terms analogy to help you better understand:
There's you and your brother Jimmy
Both you and Jimmy are pretty good with money. A trait passed down by your parents.
Both you and Jimmy have careers in finance. In fact, you work for the same bank. You both have stable, well-paying careers.
Then little Johnny is born (yours) and you decide to set up a trust, with yourself as trustee. You envision this trust will help shoulder the future expenses of Johnny's education. Why? Because you don't live paycheck to paycheck nor want to swallow those expenses as they come, getting yourself into debt.
Jimmy loves the idea, and offers to help you.
You invest wisely, and manage it well. Jimmy has spent a great deal of his personal time fund raising and gathering contributions for this trust. Even Jimmy's son, Jeremy, has gotten in on the act and has raised a good deal of money himself.
As you've managed the investments and gathered contributions, the balance of the trust has exceeded you own expectations. Certainly you and Jimmy and Jeremy are responsible for that. As are some others you've brought in. Everyone has worked hard and helped raise the balance to over 1000x your annual salary that you make from the bank.
Is it unethical to set your salary as trustee to less than 1% of the principle balance, even if that exceeds your salary you make from the bank?
Is unethical to compensate Jimmy, and Jeremy, and others who have been instrumental in building this behemoth, even though it may exceed their own individual career salaries? Especially when that compensation barely makes a dent in the overall principle of the trust?
You start setting future goals which may include opening your own branch of the bank. You know the perfect location and you know exactly what will make it successful.
Then, one day, you are at work at the bank. Sitting in on a quarterly meeting. Chad, a managing director from another division of the bank starts bringing up your trust as a talking point. You don't know Chad. Apparently Chad is a little jealous of your new Benz. You also bought the house Chad was wanting to buy before he had a chance, now Chad has done some digging into the source of your wealth. He starts asking you questions about the trust in front of colleagues around the globe who have no business knowing anything about it. Chad is friends with Karen. Karen is responsible for the corporate newsletter. Karen starts sending out articles in the corporate newsletter about your trust. Chad is giving her the information. Chad and Karen then start adding articles about what you're posting about on social media. Attacking you for cultural appropriation because you had a piñata at Johnny's birthday party. They start causing you daily headaches by watching your every move, reporting false claims to HR, even calling for an audit of your trust and anonymously tipping the SEC and IRS that there might be something illegal going on with the trust (there isn't, just sound financial management) The onslaught is never-ending. You bring it to the attention of the executive director of the bank. He agrees to fire Karen and Chad if you will resign as well. He wants this entire internal drama gone. You reluctantly agree.
The executive director hires Todd. Todd is an arrogant SOB who thinks he's an alpha male. He knows all about the previous drama, and in fact some of the real estate ventures you've invested in were ones that Todd was also bidding for and lost. Todd holds grudges and cannot wait for an opportunity to fire Jimmy. Jimmy is a very, very good managing director. Probably the best at the bank. He has one subordinate, Ron, who is a superstar. He brings in a boatload of clients and wealth, but Ron also has a tendency to live in the fast lane. Ron's had few embarrassing public moments. There was that one incident at the Christmas party, and the other time he was cited for possession of marijuana - which Ron swears was not his. Todd know's Ron is the best excuse to get rid of Jimmy. Just before Ron even has his day in court for possession, he is cited again. Again Ron swears it wasn't his, but belonged to someone he was with. Todd wastes no time and uses this incident to fire both Ron and Jimmy. Brad, a dude from the IT department who is pretty close with Todd takes over Jimmy's position.
THAT is what has happened at UofL over the last couple of years.
No one's saying that, but answer this question... How can U of L openly disregard IRS guidelines covering the compensation of nonprofit directors? Here is one example of references on the topic (LINK)...
"...Nonprofit compensation practices can also draw fire from the IRS. The IRS is charged with enforcing the Federal Private Inurement Prohibition, which strictly forbids a tax-exempt organization’s decision makers—board members, trustees, officers, or key employees—from receiving unreasonable benefits from the nonprofit’s income or assets. Excessive compensation paid to nonprofit executives is the most common violation of this prohibition, and it can cause the IRS to levy hefty fines on the persons involved..."
How is "stuffing their pockets full" not a violation? What you allege makes no sense...
Do you think Bevin would have the guts to put University of Louisville graduates on the Kentucky Board of Trustees? I doubt it. That makes him a piece of **** in my book.